The ITC share price climbed sharply on September 4, 2025, reaching ₹425.70 on the BSE. The rise, nearly 3.4 %, follows a reassuring update from the GST Council. It confirmed that the current tax structure on tobacco 28 % GST plus compensation cess,will remain until existing borrowings are repaid. Only afterward will a new 40 % GST slab, calculated on the retail selling price (RSP), take effect. This clarity eased investor concerns and lifted market sentiment.
Strong Momentum Builds Across Trading
Earlier in the week, the ITC share price had already shown steady improvement, closing at ₹411.50 on September 3. The stock still trades below its 52-week high of ₹498.94, but the recent uptick reflects strong demand and improving technical indicators. Intraday activity on September 4 showed price movements between ₹415 and ₹427, signaling heightened interest from traders.
What’s Driving the Sentiment
The sharp rally was driven by clear policy communication. The GST Council’s announcement removed a cloud of uncertainty, boosting confidence among investors. Analysts believe that stable taxation improves earnings predictability for ITC, particularly in its cigarette business, which remains a key revenue driver.
Looking Ahead
- Short-term outlook: The ITC share price is supported by technical momentum and investor optimism, with room for further upside if demand in the FMCG sector stays strong.
- Medium-term concerns: Once the 40% GST slab based on RSP is introduced, ITC may face fresh tax challenges that could impact margins.
- Investor sentiment: Current sentiment is cautiously positive, with market participants weighing today’s relief against future policy risks.
Risk Disclaimer
This article is for informational purposes only and does not constitute financial advice. Investing in stocks involves risk, including possible loss of principal. Readers should conduct their own research or consult a financial advisor before making investment decisions.
